March 01, 2011
Shifts in the employment legislation landscape could set back UK businesses to the tune of £23.87 billion over the next four years, the British Chambers of Commerce (BCC) has claimed.
Forthcoming reforms to the UK pension system, the Agency Workers Directive and right to request time off for training schemes will hit employer’s pockets hardest, the BCC estimates. And the group is urging the Government to use the upcoming Budget to "act on its promises".
By reducing the regulatory burden faced by private sector companies, the BCC claims that the Government will eliminate the "constant threat of tinkering with employment law" and its detrimental and costly effect on business.
"The Government claims business growth is top of the agenda, yet UK firms will be hit with huge costs once these new regulations come into force,” commented David Frost, Director-General of the BCC.
"Unless the Government reduces this kind of red tape, we will continue to have high levels of unemployment and could end up derailing the recovery."
Frost added that new regulations around the abolition of the default retirement age, paternity leave and the right to request flexible working will leave employers confused and distract them from growing their businesses.
However, despite the BCC’s objections, Sarah Veale, Head of Employment Rights at the TUC, has argued that the group has not taken important factors into account.
"The BCC's carping about a lack of skilled workers is louder than most so their opposition to new training rights goes against their own call for growth," said Ms Veale.
"With two-thirds of private sector workers not in employer-backed pension schemes, the economic cost of failing to help staff save for their retirement dwarfs the dubious figures dreamt up by the BCC."
With changes imminent, it’s important to understand what said changes will mean for your business. Our employment law experts are well versed in how the Government’s intentions will change your business practices. For all the details, please contact us today.
